USD/JPY Current Price: 1.2691

The Japanese yen was among the worst performers on Wednesday. An improvement in risk sentiment and a decline in US bonds weakened the currency significantly. Still, the slide was limited ahead of a key event for risk sentiment: the G20 meeting. Rate cuts from the Federal Reserve are expected but not as aggressively as yesterday. Comments from Bullard and Powell tampered expectations and triggered a rebound in US yields. The 10-year rose from below 2% to 2.05% supporting the rally in USD/JPY. The pair had the best performance in two months and closed far from the 107.20 area for the first time in five days. During the Asian session, retail sales data will be released in Japan, while in the US, market participants are likely to focus on the Q1 GDP revision.

Technically, USD/JPY run into an active resistance area at 107.80/90 that capped the upside. Ahead of the Asian session, some consolidation and a pullback could take place considering that the gains seen on Wednesday were the biggest in months. The 107.50 zone is the immediate support, and far below comes 107.05. Below the last one, the bearish pressure will likely intensify. The 4-hour chart shows the pair with a clear bullish bias in line with technical indicators. A breakout above 107.80 could boost the greenback back above 108.00, targeting 108.30.

Support levels: 107.00 106.75 106.50

Resistance levels: 107.90 108.40 108.70

View Live Chart for the USD/JPY

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.

EUR/USD News

GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.

GBP/USD News

USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.

USD/JPY News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Majors

Cryptocurrencies

Signatures